mehuna
Hi
Need your advice on Gratuity ..
In my previous company i have completed 4 yrs and 10 months(including 6 months probation period). I wanted to know whether i can claim for gratuity.
My previous company says that as per company policy i am not eligible for Gratuity.
Please advice what to do ? what is the procedure or steps to be taken in case i am eligible for gratuity..
My previous company is a well known company and it is a BPO...

From India, Pune
Madhu.T.K
4193

Though as per the Payment of Gratuity Act, completion of 5 years service is mandatory, following some verdicts, in some states gratuity is allowed for an employee who has completed 4 years and 240 days in the fifth year. Please contact the District Labour Officer for details of its applicability.
Regards,
Madhu.T.K

From India, Kannur
RSUDHAAKAR
7

Dear Madhu
In our company, the no of year of service towards gratuity consideration comes into effect only when the employee gets into probation, during the training period, (what ever be the duration) the company does not consider it as the service
The co has rejected some employees request for gratuity as they have put up 5.5 years of service, but out of which 2 years in training period.
The company claims the training period will no be counted towards gratuity and hence they are not eligible for gratuity payment
is it the right procedure,
The grautuity acts implies 4 years and 240 working days , from when the actual period of service counts for gratuity consideration
Regards
Rsudhaakar

From India, Madras
ganesanvenki
3

Dear Mr.Sudhakar,
Make this point clear. When only employee is given either training or probation, his training and probation period will not be considered for gratuity at all, since those period are treated as work learning period. As per gratuity act, employee means who is successfully completed both his training and probation periods.
If the training and probation periods are not regulated, for a next probation or confirmation period respectively, before the last date of such training or probation, the employer is not entitled to extend those periods. The employee will be considered as deemed fit for the next period of his service. Hence all successful employers will be more cautious on this subject.
regards
V Ganesan

From India, Madras
Madhu.T.K
4193

For calculation of gratuity the first day of an employee's appointment as a Trainee or Probationer shall be considered. Training period as per Apprentice Act, 1961 as also under the certified Standing Orders of the company only shall be taken as learning period. An employer can go on extending training or probation with a view to deter rights of employee under Labour Laws. Therefore, if found unfit, the employee should not be allowed to work. For that it doesnot require more than a year. Therefore, if an employee was under TRAINING for two years and later on he was made under PROBATION, then the probation was extended for yet another two years, and things go like this, the practice should be described as UNFAIR. Therefore, with the exception of Apprentice Training (under the Apprentice Act and as per certified Standing Orders of the company), all training period should be treated as service period only.

It is very relevant to note here that all trainees except above mentioned are covered by EPF and ESI. This implies that they are employees.

Regards,

Madhu.T.K

From India, Kannur
RSUDHAAKAR
7

Dear Sir Tks for your timely update, meanwhile, it is possibel to have either your mobile no or email address , so that if it needed urgently , we can get in touch with you Regards R Sudhakar
From India, Madras
satyareddi
Employee has to complete continuous service of 5 years, but after the ruling of Madras High Court if there are 240 working days in the 5th year even then an employee is eligible for the gratuity.
Example: where an employee has completed 4 years & 240 days of continuous service in the 5th year he is eligible for the Gratuity.

From India
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